Elements of a rental agreement
1. Property Description
The rental agreement should describe the type of property. Is it a residential property? Is it a commercial property? All these details should be there.
2. Amount of rent
The amount of rent the tenant is expected to pay should also be included. The landlord should also include the deposit the tenant should pay in order to secure their property.
3. Names of parties
The names of the landlord and tenant or the real estate agent finalizing the leasing process should be included in the agreement.
4. Rental/lease term
The amount of time or the period in which the tenant is to be in the property should be clearly defined in the agreement. The day the tenant acquires the property should also be recorded.
5. Maintenance requirements
The way both parties expect each other to maintain the property should be clearly outlined. Tenants should maintain the property to its standards while Landlords should be sure to attend to any complaints and repairs.
6. Payment terms
The terms to which the rent is supposed to be paid and the exact date should be included in the agreement.
7. Termination terms
The agreement should contain terms in which the rental or lease terms can be ended. It should also contain measures that the parties can follow to resolve their disagreements.
Termination of tenancy could be a result of many circumstances, e.g. an eviction notice by the landlord, expiration of the tenancy, tenants ending their stay due to circumstances such as security issues, etc. The law defines what processes should be followed in such cases.
Tenants who want to end their stay should give the landlord a prior notice. For example, one month's notice before they plan to leave. Landlords who also wish to end a tenancy must provide notice. This notice should also include the reason for termination. Once the tenant receives the notice, they should start preparing to vacate immediately or work within the period provided.
Issues relevant to both tenants and landlords.
- Landlords may perform background research on their tenants before leasing or renting their property to them. These include checking their criminal history record, income, credit history, eviction history, etc. This is to avoid having conflicts that could have been avoided. This is called screening.
- Landlords also have to collect rent as agreed with the tenants. It could be monthly or annually.
- Landlords also have to agree with the tenants on the repairs and maintenance. They are responsible for the damages before and during the tenancy, except when the tenant causes it.
- Landlords are also in charge of the eviction of a tenant. This however cannot be without a reason. The law in Kenya is against unfair eviction and gives landlords guidelines on when and how that should happen.
Tenants also have a role to play to contribute to an efficient tenancy.
- They are expected to follow any house rules and policies that the landlord sets. Such includes keeping the place clean all the time.
- They also have a duty to keep and leave the property as they found it. This will prevent incurring extra costs for both the landlord and them.
Landlords and tenants should understand their obligations to each other before entering into the contract. It is also very important for them to keep clear communication. It keeps both the landlords and tenants updated. Landlords could communicate an increase in rent or any other policies they might have updated. Tenants in turn can communicate any repairs and damages.
Legal Considerations of a Rental Agreement
- Landlords and tenants should involve a lawyer while finalizing the process. Real estate lawyers can contribute to the drafting process or review it for the tenant. They also ensure that it meets the legal standards because they work in favor of their clients. They make sure the language used is simple and both parties understand it. In short, they ensure the process goes on smoothly.
- You must understand the laws in your local area. It can save you from legal disputes that could be avoided. These laws help you to understand your rights and you can avoid harassment. You have a right to live in a place that is free from health hazards. In case you face an electrical or plumbing issue, report it to the landlord immediately. They have to cater to such and respond as soon as they can. Failure to do this, you can take legal action against them. For landlords, understanding these can help you set policies that align with the law.
- Whether you are a landlord or tenant, it is important to seek legal help in finalizing the process. Real estate lawyers will help you draft or review a lease agreement. If you don't understand anything in the contract, don't shy away from asking. Do not sign or get into a contract if you do not understand its terms fully.
- Before moving or settling into a property, make sure you check its condition. It is even better when you keep the evidence in photos. This way, you can always refer to them in case any issue arises. Landlords sometimes tend to inflict extra costs on their tenants.
- It is also important for you to note and keep a record of all the fixtures in the place. You can always refer to check their value. If there is any damage to the property before your stay begins, you need to notify the landlord immediately. This is to prevent charges for existing damages. Communicating with your landlords can help clear any misunderstandings and confusion easily.
- Payment made by the tenant for the property should be recorded. The tenant should ensure they make the payment through means that can be traced, for example, banks. It is very common to lose money to frauds and con artists who pretend to be real estate agents.
- Most tenants and landlords ignore the need for a rental agreement. This is inappropriate since it is a very crucial document. It serves as a contract binding the tenant and the landlord.
In Conclusion
A rental agreement provides a framework that is essential for solving disagreements. It also sets clear guidelines for how to go about maintenance and repairs on the property. Terms and conditions contained in this agreement ensure smooth tenancy. The landlord and tenants should also try to involve a third party during the finalizing process. This witness, who is neutral to the situation, ensures that both parties understand each other.
Lawyers can always help you avoid legal disputes that could otherwise cost you a fortune. They can identify errors in the agreement which otherwise you wouldn't. A lawyer will be helpful when you want to negotiate a better deal. They work to protect your rights and interests. They can help set terms that are favorable to you. Lawyers can also be involved in drafting the contract. So, it is important to involve one while doing your real estate dealings.
FAQs
Q: What is the standard for writing a rental agreement in Kenya?
A: There is no specified format for a rental agreement. However, it should contain the key elements mentioned above.
Q: Can you have an oral rental agreement?
A: While it is possible to have an oral rental agreement, it is important to have a written one because it also serves as legal evidence.
Q: How long should a rental agreement be here in Kenya?
A: The length to which a tenant can stay in a property is flexible and totally up to them. However, a minimum of one year is recommended for a stable contract.
